Cathay Pacific Airways (0293) H2 2025 earnings summary

Executive summary

• Achieved third consecutive year of strong financial performance, with attributable profit rising 9.5% year-over-year to HK$10,828 million and revenue up 11.9% to HK$116,766 million.

• Strengthened balance sheet enabled major buybacks, including preference shares, warrants, convertible bonds, and Qatar Airways' shareholding, completed for HK$6.97–7 billion in February 2026.

• Committed over HK$100 billion to fleet, cabin, lounge, and digital innovation, with more than 100 new aircraft in the pipeline.

• Expanded network to over 100 destinations, surpassing pre-pandemic capacity, and grew workforce to over 33,000.

• Celebrated 80th anniversary with special events, livery aircraft, and community engagement.

Financial highlights

• Revenue increased 11.9% year-over-year to HK$116,766 million, the highest in company history; profit margin at 9.3%.

• Group attributable profit reached HK$10.8 billion, up from HK$9.9 billion in 2024.

• Dividend per share for 2025 totaled HK$0.84, up 21.7% year-over-year, with total payout of HK$5,228 million.

• Available unrestricted liquidity rose to HK$25.4 billion at year-end, up 33.4%.

• Net borrowings decreased 19.2% to HK$46,812 million; net debt/equity ratio improved to 0.78 (or 0.60 excluding certain leases).

Outlook and guidance

• Passenger capacity expected to grow by around 10% in 2026, with new destinations and increased frequencies.

• Ongoing investment in fleet, cabin products, lounges, and digital enhancements, with over HK$100 billion committed.

• HK Express anticipated to return to profitability as new routes mature and operational issues resolve.

• External risks include geopolitical volatility, supply chain disruptions, and cost inflation.

• Cargo capacity to increase through passenger belly growth and new A350F freighters; six firm orders placed.